Forecast for EUR/USD on November 6, 2023

EUR/USD

As expected, the euro surged by 111 pips on weak U.S. employment data and reached an important target - the Fibonacci retracement level on the daily chart. A consolidation above this resistance level opens up the prospect of growth to the next Fibonacci retracement level around 1.1096. However, the initial target levels are 1.0834 (the July low) and 1.0863 - the embedded line of the descending green price channel.

The Marlin oscillator has sharply moved upwards. This morning, it slightly reversed due to a pause at the Fibonacci retracement level. The momentum it generated on high volumes will likely sustain the upward movement for another two to three days. A corrective phase may follow, and the achieved Fibonacci retracement level from Friday will act as support.

On the 4-hour chart, all indicators confirm an uptrend, except for the Marlin oscillator, which has edged down in order to diffuse before further growth. This week, several FOMC representatives will speak. It is possible that they will maintain the trend of giving cautious hints about the end of the rate hike cycle, as Federal Reserve Chair Jerome Powell did recently. Lisa Cook will speak today.